Global Connected Distribution Center Market: Overview
The pace of transformation in modern commerce is placing tremendous pressure on fulfillment operations. To fulfill large orders on time, products in distribution centers need to be processed and picked on time. In line with this, companies are focusing on adopting intelligent technologies in distributions centers across the globe. With the rise in the growth of e-commerce, there has been a rise in the installation of advanced technologies in distribution centers to maximize productivity by offering flexibility in operations by streamlining workflows, operations and processes on a unified platform. Connected distribution centers integrate machine-level sensors, smart controllers and connected devices and gather data from inputs to deliver vital information on asset condition and facility performance in real-time. The connected distribution center helps enterprises in digital transformation that is essential to increase consistency, improve utilization and maximize productivity in the upcoming future. Also, the distribution centers are offering advanced voice enabled technology in order to create an efficient warehouse environment and deliver quickly to customers.
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Connected distribution centers are integrated with advanced sensors and automation technologies, which help companies increase reliability, maximize productivity and improve utilization. Also, the integration of voice technology in connected distribution centers will enable workers to listen to instructions and give a response and also help in simplifying user interface, reducing training times, increasing safety and enhancing productivity. The integration of voice picking technology in connected distribution centers will assist workers in locating and picking inventory from shelves easily. These factors are creating significant growth opportunities for the connected distribution center market.
Global Connected Distribution Center Market: Dynamics
The shift from voice picking to vision picking operations using augmented reality and intelligent sensors in distribution centers is the primary factor boosting the growth of the connected distribution center market.
One of the factors restraining the growth of the connected distribution center market is the high cost associated with the installation of connected technologies across distribution centers. The increase in the adoption of connected distribution center technologies across E-commerce and food & beverages industries is the latest trend in the connected distribution center market.
Global Connected Distribution Center Market: Segmentation
The connected distribution center market can be segmented on the basis of technology, end use industry and region.
Segmentation of the connected distribution center market on the basis of technology:
- Internet of Things (IoT)
- Augmented reality
- Predictive Analytics
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Segmentation of the connected distribution center market on the basis of end use industry:
- Retail & E-Commerce
- Food & Beverages
- Consumer Electronics
Global Connected Distribution Center Market: Competition Landscape
Examples of some of the key players in the global connected distribution center market include Honeywell Intelligrated, Invata Intralogistics Inc., Zebra Technologies Corporation, Knapp Logistics Automation Inc., Swisslog, Ehrhardt + Partner Group and Conveyco Technologies, Inc.
Global Connected Distribution Center Market: Regional Outlook
North America is expected to dominate the connected distribution center market, followed by Western Europe and Asia Pacific. The connected distribution center market in North America is expected to witness higher growth due to the presence of prominent technology vendors in the U.S. The rise in the usage of connected technologies such as vision picking using AR and intelligent sensors in distribution center is expected to boost the connected distribution center market in North America. Also, vendors in Western Europe are focusing on the adoption of connected distribution center technologies in retail and food & beverage industries and thus, creating potential growth opportunities. Also, the adoption of connected distribution center networks in consumer electronic industries is expected to rise in Asia Pacific. Latin America & MEA are also projected to contribute significant shares to the global connected distribution center market over the forecast period.
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